IB BM Unit 1.2 Types of organisations

Charities

Non-profit social enterprises that people voluntary support for good causes

Cooperatives

For-profit social enterprises set up, owned and run by their members, who might be employees and/or customers

Company

A business that is owned by shareholders. It has been issued a certificate of incorporation, giving it a separate legal identity from its owners

Deed of partnership

The legal contract signed by the owners of a partnership. The formal deeds specify the name and responsibilities of each partner and their share of any profits or losses

Incorporation

A legal difference between the owners of a company and the business itself. This ensures that the owners are protected by limited liability

Initial public offering (IPO)

Occurs when a business selld all or part of its business to shareholders on a stock exchange for the first time

Limited liability

A restriction on the amount of money that owners can lose if their business goes bankrupt

Microfinance

A type of financial service aimed at entrepreneurs of small businesses, especially females and those on low incomes

Non-governmental organisations (NGO)

Private sector not-for-profit social enterprises that operate for the benefit of others rather than primarily aiming to make a profit

Partnership

Type of private sector business owned by 2-20 people. They share the responsibilities and burdens of running and owning the business

Private limited company

A business owned by shareholders with limited liability but whose shares cannot be bought by or sold to the general public

Private sector

Part of the economy run by private individuals and firms, rather than by the government

Public limited company

An incorporated business that allows the general public to buy and sell shares in the company via a stock exchange

Public-private partnerships

When the government works together with the private sector to jointly provide certain goods or services

Public sector

Part of the economy controlled by the government

Sole trader

A self-employed person who runs and controls the business and is the sole person held responsible for its success or failure

Social enterprises

Revenue-generating businesses with social objectives at the core of their operations. They can be for-profit or non-profit

State-owned enterprises

Organisations wholly owned by the government

Stock exchange

A market place for trading stocks and shares of public limited companies

Unlimited liability

A feature of sole traders and ordinary partnerships who are legally liable for all monies owed to their creditors, even if this means that they have to sell their personal possessions to pay for their debts